According to the vessel line-up data compiled by CoalMint Research, coal shipments taken by Bangladesh have gone up 79% on the year to 3,022,608 MT in the first 9 months of CY19 (Jan-Sep’19).
The country had imported 1,692,973 MT coal in the year-ago period.
Bangladesh had made a slow start post monsoon, wherein only 10,000 MT coal was imported in the month of Aug’19. The volume increased exponentially m-o-m to 428,585 MT in Sep’19, but was still 14% lower on the year from 497,495 MT in Sep’18.
However, despite the recent down slide, the superior coal intake posted in the pre-mosoon period, had helped the country yield a stronger y-o-y growth in coal imports.
It is pertaining to note that coal buyers in Bangladesh typically procure most of their coal shipments prior to the month of May, to remain well stocked during monsoons. The country had recorded nil imports during May-Jul’19 period.
Major Coal Suppliers in CY19:
Indonesia accounted for lion’s share in Bangladesh coal supplies during the first 9-months of CY19. The country had shipped 2,632,875 MT coal in the period, overtaking the volume of 2,329,671 MT that was supplied in the whole of CY18.
In fact, the entire coal volume during the month of Sep’19 was procured from Indonesia.
Apparently, factors like coal specification, availability, cost of coal, cost of transportation and reliability to supply pertaining to Indonesian coal, judiciously holds advantage over its nearest competitor-South Africa.
South African coal exports stood 379,733 MT in the 9-month period of CY19, up 14% Y-o-Y from 331,933 MT noted in the same period last year. However, the country had last shipped a coal shipment to Bangladesh back in Mar’19.
Domestic Scarcity and Proposed Power Plan Aimed to Boost Coal Demand:
Bangladesh has limited reliance on coal, as most of its power demand are met by gas driven power stations. Indeed, major parts of the coal imports are utilized by country’s brick manufacturers.
Meanwhile, in order to reduce overwhelming dependence on natural gas and diversify the sources of energy supply, state run Petrobangla had developed the first coal mine of the country at Barapukuria.
Apart from Barapukuria, 4 coal fields namely Khalaspir in Rangpur, Phulbari and Dighipara in Dinajpur and Jamalgonj in Joypurhat/Naogaon were discovered with estimated reserve of more than 3 BnT. However, the developments made in terms of remaining mines are under preliminary consideration.
Domestic coal supplies from the only active Barapukuria mine came into scrunity after the government halted coal sales to the local industries back in Mar’18, which had paved way for subsequent higher coal imports.
Besides, the Power System Master Plan formulated by the government had recommended coal as primary energy for electricity generation, further appealing an elevated coal demand in the country for the coming years.
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